It's a distraction for us as adults, it's also a distraction for kids and I can And I get both sides of it. Um I I voted for Noblesville. We had an active shooter at one point. Those parents are up in arms because how are you going to get a hold of Mhm. Suzy um if there is an active shooter. So, it it's it's two-sided um and it's just kind of the the world we live in. Mhm. Uh this is the best we can do from what the state has given us thus far. Mhm. Um and you know, I I don't ever try to be political, but your vote matters um when we make those votes. >> [clears throat] >> Just remember that. Okay. Any other comments? So, I guess the question is Um do we want to approve it as written for the time being and amend it as time goes along?
Was it like 10,000 or something? I think we might have even talked about this in the compression compensation committee. >> It's not turning. It >> is the other one working. Thank you. >> Um, we talked about it in compression and compensation committee, but I thought at one point we decided that that did not live at meet and confer because meet and confer hasn't dug deeply into that or done a lot of discussion with that. >> Yeah, there would need to be a lot >> meet and confer. It's the money that we're we would >> potentially be saving. >> And so I think just figuring out where that lives so it doesn't get lost because it's still a good idea. We're still struggling with um hiring staff in special ed. So, >> yeah. And it and it sounds like it just like you said, it needs it just needs some input probably from sped and groups.
In MUSD, we currently have a 10% M&O override. M&O overrides are good for 7 years, the first five being fully funded, and then years six and seven are reduced by 1/3 until um we no longer receive additional funds. The specific use of our override are listed in the voter information pamphlet. It included investing in technology, keeping class sizes small, and maintaining the RAM Academy. This table's from our annual annual report we give we gave last last October. It shows the kinder the kindergarten through fifth grade class size targets before and after the override compared to actual class size data to show we continue to honor the override commitments for for lower class sizes. This chart shows the projected budget for the fiscal year 27-28 school year, which would be the first year of the reduction um of our current override if not continued. It includes some additional detail of actual expenditures by category, showing where each dollar of the override is allocated.
I mean, that was the motion to approve it as presented, so do we want to amend? I think it'd be good to Do you want to amend anything before we vote on it? When is uh and I actually know this is the second year it's done. When is this going to affect as soon as we approve it or is it in effect for the next fiscal year? Next school year. We're approving this for the next school year. All right, so technically we can say it's the wild people in May maybe starting to sign it, it doesn't go into effect until August. August then. Okay. So, there's our buffer of time to communicate. Okay.
>> It needs a place to live >> and it isn't just sitting in one place, but I think it needed to be discussed here at meet and confer just to let them know that we're looking at the option and trying to figure something out for that. >> Yeah, we shared the option that at I don't know two or three meetings ago, but we haven't done anything deeper since then. So, >> it could be rolled back to like a a task force to dig deeper into the topic and and come up with something viable because I I think we still need to look at other districts, kind of do some comparative like I I think we just fell on that 10,000 randomly. >> Yeah, we were talking about raising the market demand boxes, but timelinewise, where are we with that now? because our department's already >> making decisions about contractors that we want back and contractors that we'd like not to like we're already moving forward without any information around are we likely to have higher market demands that might improve our chances to hire.
Almost $600,000 for counselors and teachers on assignment, $500,000 to technology, 7.1 million in teachers K-12, including four RAM Academy teachers. Approximately 83 teachers across the district are funded with the override. This slide shows the override allocation since year one of our override. As mentioned earlier, overrides are based on a percentage of our revenue control limit of the M&O budget, and as enrollment grows over the years, so has our M&O our M&O budget and our override. If we do not successfully pass the override continuation this upcoming November, next school year will be the the last fully funded year. We would begin a 1/3 or 33% reduction each year in fiscal year 28, 29, and 30, reducing over $2.7 million in each of those years. This is a hypothetical plan for reducing the people and programs funded by the override in the 3-year reduction period. Please keep in mind that this uses current ratios of students and does not project growth or changes in our school sites.
Hearing no objections or amendments, all those in favor of approving the student handbook, signify by saying aye. Aye. Aye. Opposed, same sign. Motion carries. Item 8.11, rainy day transfer. Yeah, so um you also saw some some commentary from me on this. Uh $2.15 million uh asking to to transfer from the operating the education fund You don't have any in your operating fund? the education fund into rainy day as we met with with Chad a couple months ago. Um we know that we need to to bolster that Uh to get us percentage-wise is where we need to be because things are so expensive. We have a if we have a chiller go out at Maconaquah, there's two of them there, it's a million dollars a piece. Um and it's, you know, they can go out any time. They We have problems with with HVAC all the time.
>> So I know Daniel had a point. Do you want me to respond to that first, Daniel, or you do you want to? >> No. Yeah, that's I mean, I was just going to say that we talked previously about 10 and 15 for market demand one and two, two being the self-contained >> and I think we were just looking to know if that was a number that we thought was going to be because we thought that would be about costneutral because again, if you hire one person, well, you're saving enough money that it'll cover the cost of the stipend over a contractor. But I think we were just waiting for confirmation on that before we've made a decision. I don't think we I mean we didn't talk here about that not being a meet and confer thing though. >> Sorry. I also did discuss that with Gretchen and and she was uh supportive of that too.
Year one shows the elimination of technology, counselors, teachers on assignment, and RAM Academy first to limit the impact of K-12 class sizes as much as possible, followed by the reduction in teachers in teacher FTE, eight at the elementary school, three at middle, and two at high for a total of 13. Years two and three would reduce approximately 33 teacher FTE as shown for each group. This table shows how FTE could be distributed based on current staffing and student enrollment um by site. Thank you. That concludes my presentation.
>> [clears throat] >> Same thing goes for wind and hail damage. Um obviously I'm I'm working to get that remedied this time, but that was a $350,000 charge that we weren't expecting. We have to have that money available and set aside for that. So, ask for your approval of that transfer resolution. Okay. Entertain a motion to approve item 8.11, rainy day fund transfer. So moved. Second. Questions? Comments on that? What did you call the number? Was that like 15% number? Um So, you know, just looking at the expenses that we know of those big ticket items, if they go out, a million dollar chiller, that would take a third of of that. And it's not uncommon for a lot of our stuff to be in that price [clears throat] range of a million to a million five. So, to make sure that we we have ample amount of money in there to take care >> Worst case scenario expense kind of >> [clears throat] >> Exactly.
So I mean I I like the 10 and 15 but >> well 10 and 15 would put us in alignment with our neighbors to the east. >> Um which is what their their uh market demand is. Right. >> Okay. Correct. Just a silent acquisition for >> I think everybody's on board to do it. It's just trying to determine which group is the right group to decide. >> So, I I do want to address Dorothy's question. So, in meeting with Gretchen, um we talked about which contractors would be prioritized, right? Uh and we did asked to kind of tar that so that the contractors that are in very hard to fill positions that are very successful in those roles. So, for instance, our multiple disabilities places uh program that's been uh kind of a gamecher to have that individual contractor in that setting. Um, you know, it could also be that with this increase in market demand, we might draw some of the contractors into positions with the district because that's a little more aligned or a little less of a a gap between what a contract agency offers and what we could offer.
And I'll be happy to answer any questions you may have. Board members, questions? The last two um charts, can you um go back to those? I was a little confused on the difference. Was one kind of building out of the first, or what was the difference between the two? Thank you. They're the same same data. This second one was to take the FTEs by elementary and show where those eight FTE could be distributed I see. by school. I understand the text is very small. Thank you. That's it for me. What is the just looking at this graph up here right now. So, we've got $500,000 for RAM Academy. Is would RAM Academy like cease to exist, or would it be reduced in size and scope? Again, this exercise is a hypothetical projection. >> In theory, the entire RAM Academy is funded by the override. So, without the override, um there would be no funding for RAM Academy.
>> Okay. And to clarify, we can move money back to education should we should that need >> Or or appropriate the money to spend out for. Um so, you don't move it necessarily back, but you'd appropriate that money on education. >> Correct. But, we we've not we've not historically had a lot of money. I've been here 20 years. Uh we ran we ran uh a balance of about $400,000 Yeah, for a long time. Yeah. Yeah, and that's not I mean, that's not safe, I don't think, to do that. Those are the one fund that [clears throat] every time that we submit a claim, we're risking our race plan although we do need bigger rainy day fund. Correct. And are there time constraints on how often we can shift funds between the accounts? Like once once a fiscal No. You you can you can move money around.
Plus, having the opportunity for benefits, >> I guess. Only people that from contractors to district employee would get the increase. >> No, no, no. It would be on the sc on the salary schedule. >> It would be uh reflected as the market demand change for well it wouldn't be a change on the it would just be on the salary schedule. The salary schedules will go to the governing board in June um so that we can finalize all of that information for all salary. But I want to make sure I understand. >> Want to make this decision so that like we have a job fair next week. Like we need to get it out and advertised so we can see if it draws. I feel like we're letting time trickle by and we're going to miss the window of opportunity of seeing if it makes a difference in recruitment.
No additional funding. It would still be RAM Academy was created when the override passed. Correct. If this should occur, Mhm. and I'm praying that doesn't, but if it should occur, the board will have some say on what reductions are made, but knowing that our budget is going to significantly be reduced. And we want to have the least amount of obviously impact in the classroom as possible. So, these are just kind of suggestions. Yep. It's not necessarily This is not how it's may play out. Yep. No, I totally understand that. All right. Thank you. Member Rothschild, any more questions? Um you mentioned that these numbers did not taken into account any uh growth in growth or decrease in student population. So, increase in student population, more federal funding, decrease in student population. It was more I ran uh these projections based on It's a 3-year projection, but it's based on students for next year.
You can transfer money. It's just not I mean, we should set up our budget so we don't have to. Correct. Um and and only use this in an emergency situation. But, we're not confined to a year. You're confined to that, so um but you're not confined to a year. Does this count against us in the same way that it does when we transfer from education directly to operations? >> It does not. That's the 15% >> That's the 15% That's the That's the That's I I didn't understand what you were asking. That's it. We can do one transfer. Now, that 50 [clears throat] above the 2 million coincided with our current balance to put them at 3 million. Any other questions, comments?
I believe it will make a difference in retention, but recruitment is this is the time to be recruiting, >> right? And I think psychologist was the other one too, wasn't it, Vanessa? >> Yeah. Yeah. >> Contracted wise. Is that what you're saying? >> Mhm. >> So, but I want to make sure I understand. You've tossed out some numbers, but you haven't actually run the actual data to say with this number of uh sped uh resource teachers versus this number of sped self-contained at these dollars amount at these dollar amounts. But we've already done staffing for next year. So that would be quick math. But we know how many resource teachers and how many self-contained teachers we'll have for next year. >> And we have the data for what we're paying for contracted and we have the data that says well on an average uh the difference between a contracted cost and a employee cost.
Mhm. For instance, Alma Alma Farrell Innovation Academy is going to grow over the next 3 years. I didn't build the growth into these projections, cuz this is just a hypothetical. This is what it could look like. In each year of a reduction, we would have accurate data, and we would make an accurate plan for that year, and we get clearer as we move forward. But, for this exercise, I didn't go through all of that work. >> Thank you. That's my Thank you, Mr. Harmon. Thank you. All right. We're at the call to the public. We do have one speaker card, so I must read this. Members of the board may not discuss items that are not specifically identified on the agenda. Therefore, pursuant to ARS 38-431.01, action taken as a result of public comment will be limited to directing staff to study the matter, responding to any criticism, or scheduling the matter for a future agenda.
Hearing none, roll call, please. David Zimmerman? Yes. Greg Babington? Yes. Rex Baxter? Yes. Alan Wilson? Yes. Tim White? Yes. Sandra Adams? Yes. Barbara King? Yes. The motion carries. Thanks down item number nine, superintendent comments. >> Yes, sir. A few things. Staff last day breakfast is May 27th or 22nd, not 27th. We should have put 27th, we won't be here for that. Uh at 7:30 a.m. If you can be here, please let Montana know. I want to make sure we introduce you folks to our teachers on that last day. They were 27th. 22nd. Graduation, May 30th, starts at 10:00 a.m. Why are we starting early? We won't have air conditioning in the gymnasium. Okay. Um also, I think Mr. Durkes has gotten some pretty um good feedback that a lot of people like to start that earlier. So, if they have their open house that day, they have more time.
So like we have the data. It's just putting putting the numbers out there and seeing if it draws in. And I would I I maybe recommend doing it for one year and then bringing it back and having a discussion with the data to see did it bring in more employees versus did it reduce our contracted services use is kind of how I would roll it cuz eventually what would happen is it would start affecting our dollars. It wouldn't be costneutral. It would only be cost neutral right now because of the extra that we're paying to the contracted. So, as your contracted use comes down and your employee use goes up, we'll be back at a place where we'll be looking at that those costs, but not for a few years probably. >> Well, I guess that's my concern with the timing then because you're not going to collect good data.